If the owner is optimistic about the company’s future sales, should the company expand by purchasing the equipment?

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Stock Options  Module Four: Cars Sold  Module Five: Computer Chips  Module Six: Vacation Time  Module Eight: Promotion  Module Ten: Printing Equipment Specifically, the following critical elements must be addressed: I. Main Elements II. Integration and Application III. Analysis IV. Critical Thinking Guidelines for Submission: Your analysis of the scenario must be submitted as a 1- to 2-page Microsoft Word document with double spacing and 12-point Times New Roman font. Rubric Critical Elements Exemplary (100%) Proficient (90%) Needs Improvement (70%) Not Evident (0%) Value Main Elements Thoroughly addresses each of the main elements found in the individual prompts and guiding questions for each scenario Adequately addresses all of the main elements found in the individual prompts and guiding questions for each scenario Addresses most but not all of the main elements found in the individual prompts and guiding questions for scenario Addresses less than half of the main elements found in the individual prompts or guiding questions for each scenario 20 Integration and Application All of the course concepts are correctly applied Most of the course concepts are correctly applied Some of the course concepts are correctly applied Does not correctly apply any of the course concepts 20 Analysis Meets “Proficient” and the quality of the statistical analysis is above minimum quality standards for competent Represents competency with respect to the statistical analysis Statistical analysis is evident, but does not meet standards Statistical analysis is not evident 40 Critical Thinking Draws insightful conclusions that are thoroughly defended with peer-reviewed evidence and examples Draws informed conclusions that are justified with evidence based on peer-reviewed research Draws logical conclusions, but does not defend with evidence based on peer-reviewed research Does not draw logical conclusions 10 Articulation of Response Submission is free of errors related to citations, grammar, spelling, syntax, and organization and is presented in a professional and easy to read format Submission has no major errors related to citations, grammar, spelling, syntax, or organization Submission has major errors related to citations, grammar, spelling, syntax, or organization that negatively impact readability and articulation of main ideas Submission has critical errors related to citations, grammar, spelling, syntax, or organization that prevent understanding of ideas 10 Earned Total 100Instructions The owner of a small printing company is considering the purchase of additional printing equipment to expand her business. If the owner expands the business and sales are high, projected profits (minus the cost of the equipment) should be $90,000; if sales are low, projected profits should be $40,000. If the equipment is not purchased, projected profits should be $70,000 if sales are high and $50,000 if sales are low. 1. Are there options other than the purchase of additional equipment that should be considered in making the decision to expand the business? 2. If the owner is optimistic about the company’s future sales, should the company expand by purchasing the equipment? 3. Is the owner’s optimism or pessimism about sales the only factor that may impact the company’s profits? 4. The equipment to be purchased is known in the industry to have a useful life of five years. How might this impact the printing company?

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